Northrop Grumman Corporation (NOC), Textron Inc. (TXT): Aerospace and Defense Companies Battling it Out

Page 1 of 2

The global Aerospace and Defense, or A&D, Industry is expected to grow at a rate of around 2.5% over the period of 2012-2015 to reach $544.7 billion. The companies in this sector are striving hard to cash in on the underlying growth opportunities, and in order to gain most are entering into joint ventures and signing more contracts. A&D companies have growth potential, and they are adopting distinct strategies to build a stronger presence in the market. Let’s check out how these strategies will work for these companies?

Northrop Grumman Corporation (NYSE:NOC)Northrop Grumman Corporation (NYSE:NOC)Northrop Grumman Corporation (NYSE:NOC)

New contract generating higher growth opportunities

Recently, Northrop Grumman Corporation (NYSE:NOC)’s Scalable Agile Beam Radar, or SABR, was selected by Lockheed Martin for upgrading and modernizing radars on the F-16 fighter aircraft of the U.S. Air Force. This upgraded radar will add unique operational capabilities to the widely used fourth-generation F-16 fighter aircraft. This program falls under Northrop Grumman Corporation (NYSE:NOC)’s Electronic segments sectors. SABR active electronically scanned array, or AESA, is the newest airborne fire control radar, which improves the F-16 aircraft’s attacking efficiency by enabling it to identify and detect targets with high-resolution synthetic-aperture radar, or SAR, maps, and electronic protection. It is expected that by developing this radar, Northrop Grumman Corporation (NYSE:NOC)’s electronic systems segment may generate the revenue of more than $7.13 billion this year from $6.95 last year with year-over-year growth of around 2.6%.

The company is providing the network and integration services under the Distribution Mission Operations Network, or DMON, service contract to the U.S. Air Force. It recently received the contract of $490 million to continue its DMON services for the next five years, which could potentially extend to 2023. DMON allows various aircraft platforms located around the world to operate and train warfighter pilots together in virtual conditions. The company has been supporting war-fighter training for more than ten years, and Northrop Grumman Corporation (NYSE:NOC) innovated it DMON services, making it more powerful, efficient, and affordable.

Last year, the company extended the network area of DMON to additional Air Force platforms and extended capabilities to realize the potential of virtual and cost-effective training. Therefore, it is expected the company may continue to receive extension requests from the U.S. Air Force for its DMON services in the future. Due to the contract, Northrop Grumman Corporation (NYSE:NOC) raised its revenue guidance by around $300 million to $24.3 billion for this year.

Joint venture driving future revenue

In June, Textron Inc. (NYSE:TXT) won the five-year contract worth $6.5 billion from the U.S. Naval Air Systems Command, or NAVAIR, due to the Bell The Boeing Company (NYSE:BA) V-22 program, a 50:50 joint venture between its subsidiary Bell Helicopter and The Boeing Company (NYSE:BA).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!